Friday, 23 February 2018

Announcement

MKTUPDTE: TPW: Proposal to re-settle the Tauranga Energy Consumer Trust

25 Jan 2018 08:30NZX
Proposal to re-settle the Tauranga Energy Consumer Trust and cease to pay the
TECT cheque to Trustpower customers in the Tauranga / Western Bay of Plenty
region

The trustees of the Tauranga Energy Consumer Trust ("TECT") - a 26%
shareholder in Trustpower - have announced their intention to consult on a
proposal which will, in effect, move all the assets of TECT into a separate
charitable trust and wind up TECT.  TECT has advised that, as a result,
Trustpower''s electricity customers in the Tauranga / Western Bay of Plenty
region who are the principal beneficiaries of TECT will, from a specified
date (currently proposed by TECT to be from 2023), no longer receive their
annual TECT cheque.

Although Trustpower has been in confidential discussions with TECT''s trustees
concerning their proposal, the only direct information that Trustpower has
received in respect of the proposal announced by TECT is in their letter to
us received late on 24 January (attached).  TECT asked Trustpower to support
this proposal, which we declined to do. Trustpower is aware that TECT has
made various statements to media.

What the trustees are proposing to do will fundamentally and permanently
change the nature and purpose of TECT. TECT was established in 1993 to hold
Trustpower shares on trust to benefit Trustpower''s electricity customers in
the Tauranga / Western Bay of Plenty region.  Even as Trustpower has grown
and diversified its generation and retail business over the last 25 years, it
has remained a local Tauranga business.  Trustpower''s relationship with TECT
solidifies Trustpower''s links to the Tauranga community, so that the success
of Trustpower is the success of its local electricity customers.

Trustpower will therefore be scrutinising the impact of this proposal on its
local customers, and will be seeking feedback from these customers before
forming a view on what actions it should take in respect of this proposal.
It will also be taking legal advice as to whether the trustees'' proposed
actions are lawful (given the fundamental change to the nature and purpose of
TECT).

For further information, please contact:

Vince Hawksworth
Chief Executive
021-223-4609
End CA:00313391 For:TPW    Type:MKTUPDTE   Time:2018-01-25 08:30:42
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